Faculty & Research

Unobserved Actions of Mutual Funds
Mutual fund investors should consider more than a fund's past returns or expenses. They also should account for the unobserved actions of mutual fund managers, say assistant professors of finance Lu Zheng and Clemens Sialm.

"Mutual fund investors do not observe all actions of fund managers," said Zheng. "They do not observe the exact timing of the purchases and the sales of securities and the corresponding transaction costs." More...

Moving Beyond Reactive Firing-Squad Mentality
Organizational crises can spell disaster for many companies. However, bumps in the road also can provide executives with valuable opportunities to learn from missteps and take strategic measures to rebuild and renew their organizations. New research by Lynn Wooten, clinical assistant professor of corporate strategy and management and organizations, suggests that company leaders can benefit from framing crisis management through multiple lenses. More...

Client Defections: Companies Are Careful about the Company They Keep
Many firms that dissolve business relationships, such as when companies dropped accounting firm Arthur Andersen after the Enron audit failure, do so to avoid the perception of impropriety.
In a new study, Michael Jensen, assistant professor of corporate strategy and international business, says that the dissolution of interfirm relationships does not depend necessarily on the uncertainty surrounding a firm whose business practices are called into question. More...